Fiscal Year 2000/2001 The responsibilities of the
Unit broadened and its' activities intensified during the fiscal year 2000
- 2001: · All properties of the former Mutual Life and Crown Eagle entities were absorbed directly into FINSAC, and the staff and operations of Jamaica Mutual Properties were absorbed by the Maintenance Stream of the ADU. · All remaining liquidation activities of Mutual Life, which included primarily the sale of the mortgage portfolio were brought under the Liquidation Stream. Also added to the Liquidation Stream were the remaining assets and liabilities of the Eagle Permanent Building Society (EPBS) and Eagle Merchant Bank of Jamaica (EMBJ). This was a part of the process of preparing Union Bank for sale.. · As part of a Scheme of Arrangement with NCB, several major properties were acquired from NCB (Investments) Limited. These include the Liguanea Lands in New Kingston, Baywest Shopping Centre in Montego Bay and the St. Jago Shopping Centre in Spanish Town as well as some eight (8) strata lots in Sunshine Village, Negril. The Island Life centre in New Kingston was also acquired, as part of the 1999 recapitalisation agreement for Island Life Insurance Company. · A number of residential and commercial properties were also assigned for sale by private treaty as part of the ongoing effort by the Loan Recovery Unit (LRU) of Finsac Sales After disposing
of eight (8) of the fourteen (14) hotels in the previous year, the
momentum in sales was maintained. The
process continued to be enhanced through a wide broker panel, which now
numbers fifty (50). Some signs of resurgence in
the economy was evidenced by the increased interest in the purchase or
lease of major commercial properties.
There was significant interest from the IT Sector. Property
Management With the substantial increase
in the number of properties plus increased tenant activities, the Property
Management Stream was strengthened. Lease
Administrative and Estate Management skills available in-house were
complemented by either full-time or part-time employment of the requisite
technical skills in the field. Liquidation With intervention activities closed and the Loan
Portfolio being prepared for sale, liquidation of all acquired entities
and subsidiaries is now a major focus of activity. In January 2001, Price Waterhouse Coopers (PWC) was
contracted to initiate a project for this activity.
Phase I - The Fact Finding/Research Phase - has been completed and
we are into the second Phase- Implementation - which will be driven
primarily by an in-house liquidation team.
Specific
Accomplishments Accomplishments
during the fiscal year 2000 - 2001 are as follows:
As at the close of the fiscal year 2000 - 2001 (March 31,2001), cumulative divestment of assets totaled over J$11.7 billion. Of this amount, J$0.892 billion represents sales in progress. This compares with J$9.352 billion for the previous year.
116
real estate holdings totaling over J$1.2
billion were disposed of. (Of this amount, J$0.892
billion represents sales in progress). Significant
Properties sold were:
Sale was completed on three hotel properties totaling US$ 26.5 million in value. These were: o Crowne Plaza o Terra Nova o Boscobel -
The completion of the sale of Navy Island is still pending, and awaits the
resolution of legal issues. Ciboney has been leased to Sandals Group, and is now operated as the “Beaches Grande Sport”. The lease runs for a 3-year period, and includes an option for Finsac to require the hotel to be purchased. · Artwork 64 pieces of Artwork from the Mutual Life collection were auctioned and a total of J$3.9M received as proceeds.
ASSET SALES (April 1, 2000 - March 31, 2001)
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